Rajan: ‘Let’s fight the anti-inflation fight once’
RBI governor dampens expectations of rate cut in coming months
The Reserve Bank of India (RBI) held its key interest rate at 8% today, as governor Raghuram Rajan stressed the need to maintain a "vigilant monetary policy stance" despite falling inflation.
Annual CPI inflation fell to 7.31% in June – the lowest it has been since January 2012 – which Rajan attributed to the "muted" increase in the prices of non-food items.
The RBI is aiming to keep inflation at or below 8% by January 2015. While it appears to be on course to hit that target, Rajan is concerned
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